Its name has not yet been disclosed and the leader will be named ” on time “, but the new entity that will bring together the African business of Sanlam and Allianz is already heralding the colors of continental leadership. The South African and German insurance giants announced on Wednesday May 4 a joint venture of their African activities outside of South Africa. The pan-African entity has a combined value of approximately $2 billion and covers 29 countries. “The joint venture will allow us to take an important step towards realizing this ambition[tobealeadingpan-Africanfinancialservicesgroup”[d’êtreungroupedeservicesfinancierspanafricaindepremierplan »said Paul Hanratty, CEO of Sanlam Group. ” That,he addedwill also strengthen our leadership position in several key markets that are central to our strategy in Africa.” .
Founded in 1917, Sanlam has long been content with English-speaking Africa. And even when it thought of gaining international power, the South African company first turned to the West. In 2018, a decisive turning point took place with the takeover of Moroccan Saham (whose name should indeed change this year) which immediately multiplied its entries into West and Central Africa. In 2021, the firm brewed its largest turnover since the takeover of Saham: 200 billion rand, or more than 12.6 billion dollars.
Commenting on the new joint venture, Allianz SE Board Member Christopher Townsend advocates “a new model of partnership” with an insurer “share values”of the German group. It is purely and simply “to accelerate its growth in this important region »indicated this leader who is one of those who approved the appointment of the Burkinabè Delphine Traoré at the head of Allianz Africa last November.
Towards a certain reconfiguration?
Thus concluded five months after the start of talks last December, the Sanlam-Allianz deal reconfigures an African insurance sector. This market on a continental scale weighs nearly 68 billion dollars in terms of premiums, of which the lion’s share (72%) goes solely to South Africa, which enjoys strong insurance penetration at the national level. The rainbow nation being excluded from the agreement, the joint venture Sanlam-Allianz is therefore positioned on the remaining share (28%) of around 19 billion dollars, on which Morocco sits so far. It should be noted that the Cherifian kingdom is one of the markets where the two companies are already present.
Even if the markets are not particularly moved by the announcement this Wednesday of this joint venture (Sanlam listed on the Johannesburg Stock Exchange (JSE) and Allianz on the Frankfurt Stock Exchange), it goes without saying that the establishment of the new entity and its top management will be closely followed.